BASIC TAX PLANNING: 

With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2025.  

Superannuation Contributions  

 The concessional contributions cap for 2025 has increased to $30,000, up from $27,500 from the 2024 financial year. A concessional contribution is a voluntary payment from your before-tax income to your superannuation fund and includes SGC Super Guarantee Contributions paid by employers.  The contributions are then taxed at a concessional rate of 15% in the superfund, rather than your individual tax rate.  Concessional contributions are capped each year to prevent people taking advantage of the lower tax environment offered by superannuation funds. 

 For those with superannuation balances below $500,000, unused concessional caps from prior years can be applied as carry forward concessional contributions.  

 A review of prior years may assist in maximising tax deductions for superannuation contributions and increasing superannuation balances.  

 Instant Asset Write-Off  

Temporary full expensing ended on 30 June 2023.  However, for the 2024 financial year small businesses, with aggregated turnover of less than $10 million, could immediately deduct purchases of eligible assets costing less than $20,000 under the Instant Asset Write-Off.  The expectation is this threshold will be extended for the 2025 financial year.  See our section on “What the latest Federal Budget means for you” for more details. 

For assets that are priced at $20,000 or above, which do not qualify for immediate deduction, there is still a provision. These assets can be added to the small business simplified depreciation pool. In the first year, these assets can be depreciated at a rate of 15%, with subsequent years at 30%. 

If you would like to know more, please call our office on 03) 5571 0111 or email us at reception@coggergurry.com.au